Why should you outsource your new business development?
Outsourcing is the process of contracting out business functions and processes to third party providers. An expanding number of businesses are seeing the increasing benefits of using this approach.
Businesses commonly outsource legal, HR, and accounting tasks to other providers and new business development is no different to this. With the increase of brands outsourcing new business development tasks to third party providers, outsourcing is becoming a growing trend.
The many benefits of outsourcing
The growth and future success of businesses are now being dictated by innovative and creative approaches to client service and delivery, which defines strategies from the outset, showing that new business development is vital to succeed and develop your business.
Letting go of this part of your business and outsourcing it to a third party can be a massive relief, especially when it provides an increase in sales, consumers, and new business leads. Ultimately it does pay off to choose an outsourcing partner to work with who has a long experience in helping businesses connect with other businesses. When doing this, it means your productivity increases along with your profitability, but the impact doesn’t carry over to the cost as your billable hours do not extend.
With this decision like any, there are some pros and some cons to consider. One of the things to consider is that a loss of control could be a potential business risk, so before deciding on contracting out any activities or operations, including business development, you should think about all of the pros and cons and the effect outsourcing could have on your business.
Why should I outsource new business development?
Outsourcing new business development will result in increased lead generation, and you can focus on the effort your putting into your other parts of the business. The increase in lead generation and growth of the business will create a business that is competitive and fit for the future. This is the reason that businesses who value intelligent tactics as a part of their new business development strategies will thrive and excel in the future.
Pros of outsourcing new business development
Still not convinced? Here are a few pros and cons of outsourcing new business development to help you make your decision.
- No need to hire more employees
When outsourcing your work, you can choose to outsource it to an external partner that works as a contractor. This means you can avoid all of the complications of hiring a new employee and training them up, which will also save you some money that you can invest back into other areas of the business.
- Access to a pool of talented individuals
When you hire an external partner to take over your new business development, you are also hiring their team of specialist individuals in the sales industry, who are committed 100% to deliver results to your business. This also helps other areas of your company as it means that you can focus and invest more time into the core strengths of the business.
Possibly the greatest benefit of outsourcing is the flexibility within your team. You can cut fixed costs or increase them by increasing or decreasing the size of your team to suit your current business situation or the current state of the market.
The cons of outsourcing
There are many benefits of outsourcing new business development but despite this, there are also a few disadvantages, so you should consider carefully which path you go down with your business.
- Lack or loss of control
When outsourcing new business development, you will always lose some control over that part of your business and its functions. To help to belittle this problem, you can find a partner who is willing to create an effective communication strategy to help mitigate this issue. Most experienced partners will have already experienced problems like this with other clients and may already have procedures in place to help this.
- Choosing a bad partner
In business, especially when outsourcing, finding a good partner is crucial, and if you choose the wrong one it can be fatal to your business. When looking for a partner, you should always choose one with a great track record of growing companies to help yours grow too.
- The effect on company culture
Outsourcing your new business development may have an impact on your company as a whole, so if you plan on outsourcing you need to put procedures in place to ensure that this does not harm your company culture. Positive culture means an increase in productivity, so putting this at risk could be fatal to the efficiency of your business. Also, when outsourcing, you need to ensure that your employees do not feel like they are being replaced or their jobs are at risk, to do this you should help them understand that this particular task has been outsourced for the reason of helping them and not replacing them. You could also tie everything together and overcome this problem by outsourcing your new business development and your sales and marketing to the same partner, this may relieve your staff as they will be heavily involved in driving the strategy on your behalf, they will also have a privileged position in the business when it comes to backing up your business decisions.